DC’s Eye Street Building Gets New Owner
- Dec 03, 2015
Duwaliya US Real Estate Inc., the United States real estate affiliate of Qatar’s royal family, has bought a 218,923-square-foot, Class A office building at 1575 Eye St. in Washington, D.C., for nearly $108 million.
The seller was 1575 Eye Street Associates, L.P., with the American Society of Association Executives as a limited partnership owner and tenant since the building opened in 1980. The partnership was managed by Carr Properties, which has been retained by the new owner to provide property management services.
ASAE confirmed the sale but the amount it will receive from the disposition was not available.
“When one of the partners in the building wanted to sell their share, ASAE approached the Board of Directors and they approved ASAE to move forward with selling our limited partnership,” John Graham, ASAE president & CEO, said in a prepared statement. “After closing costs, taxes and other expenses are finalized, ASAE will work with the Board of Directors to determine how to best invest the monies received into our programs, products and services.”
ASAE’s lease was extended to 2025 as part of the sale. Tom Fulcher and Arthur Greenberg, executive vice presidents at Savills Studley, represented ASAE on the lease extension.
Cushman & Wakefield Vice Chairmen Bill Collins and Paul Collins and Executive Managing Directors Drew Flood, Jud Ryan and James Cassidy brokered the deal for the seller.
“Because of the strong location a block from the White House and abundant amenity base, this building was popular amongst potential buyers,” Flood said in a prepared statement.
In addition to ASAE, the building’s other main tenants are the U.S. Department of Veterans Affairs and the Federal Aviation Administration. On-site amenities include a conference center, rooftop terrace, newly renovated and expanded fitness center, parking garage and deli. Located next to the McPherson Square Metro station, it is surrounded by numerous restaurants and hotels, including the Hay Adams, St. Regis, Capital Hilton and Hyatt Place.
Carr Properties had retained DTZ, which is now part of Cushman & Wakefield, earlier this year to begin marketing the property.
The Al Thani ruling family has made other large commercial real estate purchases elsewhere this year. In March, Duwaliya UK Real Estate Holdings purchased a 150-year leasehold interest in a 90,000-square-foot office building in London for the equivalent of about $110 million.
Qatari entities have been active in Washington, D.C. real estate in recent years with the Qatar Foundation International, L.L.C. becoming a tenant at CityCenter DC, the 10-acre, mixed-use development, where Qatari Diar Real Estate Co., Qatar’s sovereign wealth fund, is one of the main investors. This summer, Al Rayyan Tourism Investment Co., (ARTIC) based in Doha, Qatar, bought the 182-room St. Regis Hotel.